Can a home loan modification program help you save your home?

In the United States right now, foreclosure rates are higher than they’ve ever been. Homeowners are literally fleeing their homes and letting the banks deal with what they leave behind. Since banks are in the banking business and not the real estate business, they don’t really want the houses back. If you’re in a place where you think you’d be better off leaving your home because you can no longer afford your mortgage payment, you should first look into one of the many programs available to you! It IS possible to re-work your mortgage loan to better suit your financial needs.

Loan Modification, Loss Mitigation and Home Loan workout programs are some options to consider. If you enroll in any of the aforementioned programs, you should be cautious about the company you work with. Make sure they’re reputable! A good company can make the programs incredibly successful in offering you financial relief.

Take, for example, a borrower with a $400,000 mortgage loan at 8%, living in a home worth $340,000. Once the home has been foreclosed, the bank has to either re-list the home on the market or sell it at an auction. Re-listing or auctioning off the home could potentially add another $60,000 in losses for the bank.

If the bank takes the loss by re-listing or auctioning off the home, they’re looking at a total loss of nearly $120,000. A modified mortgage loan of a 30 year fixed rate, and a lower interest rate of 5.25% would instead have the bank looking forward to almost $400,000 in interest payments over the life of the new loan. Talk about win/win!

It’s best to work with an attorney to structure a loan modification, as their default rate is under 5%. Homeowners that go it on their own often default at least 50% of the time. Another perk is that banks prefer to work with attorneys.

The costs vary for this type of program but are usually fully refundable if the attorneys are not able to modify your home loan. The types of workout remedies that they are able to achieve are amazing. They range from interest rate reductions, lower monthly payments, extended payment terms, and loan principal reduction.

We can give you a free consultation to see what can be done to best fix the financial fiasco you’re dealing with. If you’re having problems making your current mortgage payment or you’re dealing with an adjustable rate mortgage that doesn’t work for you anymore, give us a call at 1-888-282-1011 and get some more information about our loan modification program!

Daniel R. Michaelson, an author and leading authority on consumer debt consolidation programs. You can learn more about approved mortgage modification.

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